IBM plans to replace thousands of jobs with artificial intelligence

May 2 2023, 9:19 pm

IBM told Bloomberg this week that it plans to pause hiring for 7,800 back-office roles that could be replaced by artificial intelligence in the next five years.

This constitutes a pause on 30% of its 26,000 non-customer-facing roles.

According to IBM’s chief executive officer, Arvind Krishna, there will be a suspension or slowdown in hiring, which may include not filling positions that become vacant due to attrition.

Krishna, who has been CEO since 2020, said examples of tasks likely to be fully automated in the next five years include the production of employment verification letters and moving employees between departments.

He added that certain Human Resources roles, including the assessment of workforce productivity, are unlikely to be replaced for another decade.

IBM is an American technology corporation with offices across Canada, including in Vancouver, Mississauga and Montreal.

In January, IBM cut 3,900 jobs worldwide, about 1.5% of its workforce, after failing to meet its annual cash target.

However, according to Krishna, the company has seen an overall increase in its workforce this year, having gained 7,000 new employees in the first quarter.

The use of artificial intelligence has increased rapidly in recent years, with companies eager to harness the technology to streamline operations, increase productivity, and reduce costs.

A report by Goldman Sachs released in March warned that 300 million jobs are at risk of being reduced or entirely replaced byĀ generative AI.

IBM’s decision to pause hiring reflects a concerning trend, leading many to question how the labour market will evolve in an increasingly AI-driven economy.

Krishna also revealed in the interview that he foresees the possibility of a “shallow and short” recession in the US later this year. This could lead to further job losses across borders and industries.

Are you concerned about your job being replaced by automation and AI? Let us know in the comments.

Harry LinleyHarry Linley

+ News
+ Venture
+ Tech
+ World News
+ Canada